Real Estate. Massachusetts Principles
and practices
Law of agency(6) – answer fiduciary duties agents owe to clients
1.obediance
2.undivided loyalty
3.full disclosure
4.confidentiality -personal
5.full account-must report all money
6.reasonable care
reasonable care - answer required to protect client from foreseeable risks and to
exercise care and competence fair and honest dealing with buyer which fall into 3
categories of disclosure.
must inform clients of material defects, no caveat emptor, obtain written information
about property to avoid litigation, when buyer purchases as in condition still must
disclose defects, in stigmatized property, must be disclosed only if directly asked
the listing(3) - answer1.agent cannot show a property unless allow by seller, no
commission by presenting buyer to seller, must have prior agreement
2.asking price is set by seller,selling price is determined by both through offer and
acceptance
3. only the agency is hired not agent, salesperson may negotiate on agencies behalf
with permission
termination of agency agreement - answerby principal or broker, not by death or
salesperson disability, destruction of property, expiration of hiring, closing,
abandonment by agent, eminent domain
offer's include (6) - answerpotential buyer makes a written offer terms include:
purchase price, earnest money deposit(escrow), time and nature results for home
inspection, closing date, mortgage contingency clause, expiration date for offer, buyer is
offeror, seller is offeree
offer termination - answerdeath of either party, end of time limit or offer, destruction of
object of offer, withdrawal of offer before acceptance, offeree making counter offer,
signed acceptance of offer created a real estate contract
offer acceptance - answeracceptance of offer created a real estate contract, seller
agrees to offer by signature binding parties to agreed conditions. If offer is not intended
to be the P&S it must so state. creates enforceable duties to get through home inspect
and practices
Law of agency(6) – answer fiduciary duties agents owe to clients
1.obediance
2.undivided loyalty
3.full disclosure
4.confidentiality -personal
5.full account-must report all money
6.reasonable care
reasonable care - answer required to protect client from foreseeable risks and to
exercise care and competence fair and honest dealing with buyer which fall into 3
categories of disclosure.
must inform clients of material defects, no caveat emptor, obtain written information
about property to avoid litigation, when buyer purchases as in condition still must
disclose defects, in stigmatized property, must be disclosed only if directly asked
the listing(3) - answer1.agent cannot show a property unless allow by seller, no
commission by presenting buyer to seller, must have prior agreement
2.asking price is set by seller,selling price is determined by both through offer and
acceptance
3. only the agency is hired not agent, salesperson may negotiate on agencies behalf
with permission
termination of agency agreement - answerby principal or broker, not by death or
salesperson disability, destruction of property, expiration of hiring, closing,
abandonment by agent, eminent domain
offer's include (6) - answerpotential buyer makes a written offer terms include:
purchase price, earnest money deposit(escrow), time and nature results for home
inspection, closing date, mortgage contingency clause, expiration date for offer, buyer is
offeror, seller is offeree
offer termination - answerdeath of either party, end of time limit or offer, destruction of
object of offer, withdrawal of offer before acceptance, offeree making counter offer,
signed acceptance of offer created a real estate contract
offer acceptance - answeracceptance of offer created a real estate contract, seller
agrees to offer by signature binding parties to agreed conditions. If offer is not intended
to be the P&S it must so state. creates enforceable duties to get through home inspect
